Payday Super 2026: What Employers Need to Know

General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.

The biggest change to superannuation in decades is now in effect. Since 1 July 2026, employers must pay super at the same time as wages — not quarterly. This “payday super” reform was legislated on 6 November 2025 and affects every employer in Australia.

What changed

Old rules (earnings paid up to 30 June 2026)

Employers paid super quarterly, with payments due 28 days after each quarter ended:

Current rules (since 1 July 2026)

Super contributions must be received by the employee’s super fund within 7 business days of payday.

If you pay an employee on Friday 3 July 2026, their super must hit their fund by Tuesday 14 July 2026 (7 business days, excluding the weekend).

Key requirements

1. “Qualifying Earnings” replaces OTE

The legislation introduces a new concept: Qualifying Earnings (QE). From 1 July 2026, SG is calculated as 12% of an employee’s qualifying earnings. Quarters ending on or before 30 June 2026 stayed on ordinary time earnings (OTE).

QE is broader than OTE rather than a restatement of it. Everything that was in your SG calculation up to 30 June 2026 stays in, and OTE itself is unchanged — but QE also picks up all commissions, including commissions for work performed entirely outside ordinary hours, amounts salary sacrificed to super that would otherwise have been QE, and certain payments to people inside the expanded definition of employee (contractors paid mainly for their labour, and sportspeople and performers), whether the work was done during ordinary hours or outside them. Overtime is still excluded, and so is a bonus paid for work performed entirely outside ordinary hours — note that a commission on the same work is now included where a bonus is not. For most employers the dollar figure does not move.

2. Reporting obligations

For the first time, employers must report the components of qualifying earnings used to calculate SG contributions. This means more detailed payroll reporting to funds.

3. Small Business Super Clearing House closed

The Small Business Super Clearing House closed from 1 July 2026. Small businesses that used it needed to move to an alternative clearing house arrangement.

What happens if you’re late

Missing the 7-business-day deadline triggers the Super Guarantee Charge (SGC), assessed by the ATO per payday (per “QE day”), made up of:

• The individual super guarantee shortfall — the super amount not received on time
• Notional earnings — interest on the shortfall, accruing daily at the general interest charge rate
• An administrative uplift starting at 60% of the shortfall plus notional earnings combined (reducible for a first miss or a voluntary disclosure statement, potentially to nil)
• A choice-of-fund loading of 25% of the contribution if choice-of-fund rules were also breached

For paydays from 1 July 2026, the SGC — including the administrative uplift — is tax-deductible, unlike under the old quarterly system. Employers no longer lodge a quarterly SGC statement; the ATO assesses missed payments directly, or you can self-report first with a voluntary disclosure statement to reduce the uplift. Unlike the old quarterly system, late payments under payday super can accumulate quickly since each pay run creates a new deadline.

Staying compliant

Review your payroll systems

Your payroll software needs to:

• Calculate super on each pay run
• Submit contributions to super funds within 7 business days
• Track and report qualifying earnings

Check with your software provider about payday super readiness.

Understand your cash flow impact

Under the old quarterly system, a business could hold up to 3 months of super contributions before paying. Under payday super, that cash buffer no longer exists — model the ongoing impact on your working capital.

Find a clearing house

If you were using the Small Business Super Clearing House, you need an alternative now — it closed from 1 July 2026. Commercial clearing houses and many super funds offer clearing house services.

Update employment contracts

Review employment agreements to ensure super payment terms align with the new requirements.

ATO’s compliance approach

The ATO has finalised its compliance guidance — PCG 2026/1, previously released in draft as PCG 2025/D5 — outlining a risk-based approach for the first 12 months (QE days from 1 July 2026 to 30 June 2027). They’ve indicated:

• Priority will be given to higher-risk employers
• Genuine technical issues during transition will be treated sympathetically
• Employers who deliberately underpay or ignore obligations won’t receive leniency

Benefits for employees

Payday super means:

• Faster contributions: Money reaches super sooner, benefiting from compound growth
• Easier tracking: Contributions align with pay slips
• Reduced unpaid super risk: Employers can’t hold contributions for months

The government estimates employees will collectively benefit from billions in additional returns over their working lives.

Timeline

Key takeaways

• Since 1 July 2026: Super must reach the fund within 7 business days of payday
• SG rate: 12% of qualifying earnings
• SBSCH closed: Find an alternative clearing house if you haven’t already
• Stay compliant: Keep payroll systems and cash flow planning aligned to per-payday super
• ATO approach: Risk-based compliance through the reform’s first year (to 30 June 2027)

This was a major operational change. If your payroll systems, cash flow planning or clearing house arrangements still assume quarterly super, fix that now rather than waiting for an SGC assessment.

Related tools: Superannuation Calculator and Pay Calculator.